A generation ago, applying for credit was frowned upon, but today, it's a crucial part of everyday life, especially when buying a house, a car or even everyday electricals...

The majority of today's generation will struggle to buy their first home

There's an obvious generation gap in the understanding of many things.

And it's not a new phenomena – in the 1500s old folk probably thought "that young Shakespeare chap" to be a dangerous reactionary!

With finance, reactions to "debt" and "credit" have certainly changed.

Previously, many families simply wouldn't buy until they could afford to – items were "laid-away" in shops, meaning they were kept for the customer until they had saved enough to pay for them.

Credit was largely viewed as simply hire-purchase, and in some high-minded communities, buying "on tick" was frowned upon as the last resort of a scoundrel!

How financial institutions were viewed

Much of the older generation still find it hard to see banks, and other financial institutions as "shops that sell money" – yet, in essence, this is exactly what they do.

In the "olden days" obtaining a bank loan was a simple task - one that in many cases was based on "good character".

Banks would careful in their responses; one classic was: "We fully believe that Mr X would not enter into any credit arrangement he did not believe he could fulfil".

The importance of credit scores

Perhaps the biggest factor in changing views of credit came through house-buying – people "owning" their own homes and yet paying for them over long periods.

The "mortgage" became a a positive form of credit.

This attitude quickly broadened to cover many other purchases; cars being another ever-increasing example.

The team at Experian CreditExpert have noticed an ever-growing number of people making use of their expertise to fully-understand how a credit score is created, its importance in their lives, and the detrimental effect any inaccuracies can cause them.

What impacts your credit score?

Those who are considering offering you credit – and this can range from retailers, through landlords, to mobile phone companies and many others, want to assess the level of risk lending to you might represent.

A key part of the judgement they will reach is based on their calculation of your credit score.

This is created by assessing your past financial behaviour. As a simple example, reducing credit card balances could gain you points, making late payments lose them.

A final consideration

It's still true that older generations can be more accepting of the voices of authority than younger ones.

This can range through work, health, and many other aspects of life. However, with credit, it is important to ensure that you are fairly assessed.

As each potential lender creates their own scoring system, having experts like Experian create one for you acts as a valuable guide and helps you know what to expect when applying for credit.

Their team can also advise about how to challenge any inaccuracies in information held about you.